I am curious to understand that How do the organizations decide the beneficiaries for their CSR programs?
How do the organizations decide the beneficiaries for their CSR programs?
Do they select any person at random or follow criteria?
Dear Gaurav
First you need to decide which dimension of CSR you are targeting? The triple bottom line leads to 3 dimensions: environmental, economic (including HR), and social responsibility. When decided, you have to have the criteria to target and select the beneficiaries.
We also need to classify them into internal and external factors.
Internally, the organization may have its own policies on the sectors for CSR for example education, sports, agriculture and so on. However, the actual beneficiaries will depend on other criteria. I think your research may have a list of typical criteria and your respondents will rank them. This will then give you a glimpse of the diverse views. Some organizations want reciprocal publicity hence will go to sponsor soccer as compared to chess. This is pure economics at play, but encapsulated inthe form of CSR.
Externally, some recipients have received social support based on the quality of their proposals or persistence or calamity. A budget could be set aside for natural disasters and recipients are not known in advance until the disaster had occurred. Or it may be dictated by law depending on industry, for example, those whose activities could harm the enviromment like oil & gas, mining, fishing etc.
Commercial organization think commercially. CSR is different from philanthropy.
For many corporate, CSR is included in the corporate strategy for sustainability by building corporate image as social and environment friendly, responsible corporate that cares for long term value creation for all the stake holders. CSR approach is therefore, based on economic, social and environmental considerations for creation of goodwill that ultimately helps in creating competitive advantage for sustainable growth and development.
The following papers should be helpful to your topic:
- Maloni, M. J. and Brown, M. E. (2006). Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry. Journal of Business Ethics, 68, 1, pp. 35-52.
- McWilliams, A. and Siegal, D. (2001). Corporate Social Responsibility: A Theory of the Firm Perspective. Academy of Management Review, 26, 1, pp. 117-127.
- Paul, C., J. M. and Siegel, D. S. (2006). Corporate social responsibility and economic performance. Journal of Productivity Analysis, 26, 3, pp. 207-211.
- Porter, M. E. and Kramer, M. R. (2007). Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review, 84, 12, pp. 78-92.
- Swimberghe, K. R. and Wooldridge, B. R. (2014). Drivers of Customer Relationships in Quick-Service Restaurants: The Role of Corporate Social Responsibility. Cornell Hospitality Quarterly, 55, 4, pp. 354-364.
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